The U.S. Attorney’s Office for the Central District of California recently filed criminal charges against six defendants in four separate cases of cryptocurrency-related fraud.
According to a June 30 news release, the cases include what is believed to be the largest known non-fungible token scam uncovered and charged to date. The release also noted the scheme allegedly traded on a number of cryptocurrency exchanges, essentially a worldwide Ponzi scam featuring the sale of unregistered crypto securities along with an initial coin offering that was fraudulent.
“These cases serve as a crucial reminder that some con artists hide behind trendy buzzwords, but at the end of the day they are simply seeking to separate people from their money,” U.S. Attorney Tracy L. Wilkison said in the release. “We will continue to work with our law enforcement partners to educate and protect potential investors about both traditional and trendy investments.”
Those charged, according to the release, include Le Ahn Tunn, 26, a Vietnamese national on wire fraud and international money laundering counts; Emerson Pires, 33, and Fladio Goncalves, 33, both of Brazil, facing charges of conspiracy to commit wire fraud and conspiracy to commit securities fraud; Michael Allen Stollery, 54, of Reseda, Calif., a count of securities fraud; and David Saffron, 49, of Las Vegas, Nev., on four counts of wire fraud, as well as counts of conspiracy to commit wire fraud, conspiracy to commit commodities fraud and obstruction of justice.
Luis Quesada, assistant director of the FBI’s Criminal Investigative Division noted that with cryptocurrency markets opening to consumers, criminals are seizing the opportunity to turn a fast buck illegally, the release noted. He noted the FBI will work with local law enforcement to bring criminals to justice.
Steve K. Francis, executive associate director of Homeland Security Investigations, said the probe demonstrates how important public-private collaborations are in solving these cases, and noted his agency has worked with key industry partners, according to the release. He noted HIS offered information that sparked the investigation and indictments and will continue investigating "criminal organizations operating in emerging technologies."
